Tuesday, 19 July 2016
End of financial year results released today by Rest Industry Super, one of Australia’s largest superannuation funds with more than $39 billion invested on behalf of nearly two million members, have demonstrated the resilience of the fund’s property and infrastructure investments in a challenging year for financial markets around the world.
Rest’s long-term investment focus has driven solid performance over the past decade, with the Rest Super Core Strategy (Rest’s MySuper investment option) returning 6.54% p.a. to members over a 10-year period and 9.11% p.a. over a seven-year period to 30 June 2016. The Rest Pension Balanced investment option, designed for members who are currently in or close to retirement, delivered 6.56% p.a. over 10-years and 8.89% p.a. over seven years.#
For the financial year to 30 June 2016, the Rest Super Core Strategy returned 1.82% and the Rest Pension Balanced option returned 1.81%, driven by strong returns in Rest’s portfolio of quality real estate assets.
According to Rest Industry Super Chief Financial Officer Chris Stevens, despite the volatility in financial markets over the past twelve months - most notably the continued fluctuations in the price of oil and uncertainty caused by the UK’s decision to leave the European Union (commonly referred to as ‘Brexit’) - Rest’s options have delivered strong returns for members.
“Rest’s strategic property and infrastructure investments underpinned Rest’s Core Strategy performance over the past twelve months. Australian shares and bonds contributed modest returns, but overseas shares - the largest asset class exposure for Core Strategy – moderated short term performance significantly,” he said.
Praised by independent ratings house SuperRatings as being among an elite group of Australian superannuation funds with a Balanced option^ that have provided its members with returns of over 100% since March 2009~, Rest Core Strategy has a strong track record of investment performance.
“In order to continue to deliver these strong returns for members, our focus is on investing in high quality assets that represent good value and maintaining an investment mix that outperforms the market, regardless of underlying economic conditions,” Mr Stevens said.
“Changing economic conditions and fluctuations in the value of underlying assets are a completely normal aspect of investing, and this approach ensures that our members don’t feel the full impact of this volatility. As a fund, Rest has continuously demonstrated that we can manage our members’ investments through changing market conditions.”
Historical returns on the full range of Rest Super (accumulation) and Rest Pension investment options as at 30 June 2016 are set out below: